This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 55 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The basic elements of financial statements include: A) Asset; income; expense. B) Asset; equity; income; expense. C) Asset; liabilities must pay; equity; expense. D) Asset; liabilities must pay; equity; income; expense. Show Answer Correct Answer: D) Asset; liabilities must pay; equity; income; expense. 2. On January 1 2018 a company purchased a machine for Rp. 10, 000, 000. The machine's useful life is estimated at 4 years, with no residual value. It is estimated that the machine can be used for 100, 000 hours. During 2018 the machine was used for 5, 000 hours. The hourly depreciation rate is..... A) Rp. 600/Hour. B) Rp. 100/Hour. C) Rp. 400/Hour. D) Rp. 750/Hour. E) Rp. 500/Hour. Show Answer Correct Answer: B) Rp. 100/Hour. 3. What is the role of a trial balance in financial accounting? A) To determine the market value of the company's assets. B) To track employee attendance. C) To ensure that the total debits equal the total credits in the general ledger. D) To calculate the company's tax liability. Show Answer Correct Answer: C) To ensure that the total debits equal the total credits in the general ledger. 4. What is the main purpose of charging depreciation on fixed assets? A) To record the assets at their market value. B) To provide funds for the replacement of assets. C) To reduce the cost of repairing assets. D) To spread the cost of assets over their useful lives. Show Answer Correct Answer: D) To spread the cost of assets over their useful lives. 5. Amounts entered on the left side of an account, regardless of the account title, are called credits or charges to the account. A) True. B) False. Show Answer Correct Answer: B) False. 6. A business paper from which information is obtained for a journal entry. What is this called? A) Document. B) Journal. C) Accounting document. D) Source document. Show Answer Correct Answer: D) Source document. 7. Which of the following is a Real A/c? A) Building A/c. B) Rent A/c. C) Shyam A/c. D) Capital A/c. Show Answer Correct Answer: A) Building A/c. 8. A company's profit from operations has increased by 10% in a year, whilst its gross profit hasonly increased by 5%.Which factors could explain this?1 a decrease in finance costs2 a decrease in distribution costs3 an increase in rent received4 an increase in selling prices A) 1 and 2. B) 1 and 4. C) 2 and 3. D) 3 and 4. Show Answer Correct Answer: C) 2 and 3. 9. Which of the following is not found in a trial balance? A) Opening stock. B) Closing stock. C) Rent paid. D) Capital. Show Answer Correct Answer: B) Closing stock. 10. The following users are the internal users of accounting except A) Creditors. B) Managers. C) Employees. D) None of above. Show Answer Correct Answer: A) Creditors. 11. Arithmetical checking of double-entry bookkeeping is known as? A) TRIAL BALANCE. B) FINANCIAL STATEMENTS. C) FINANCIAL DOCUMENTS. D) DOUBLE-ENTRY SYSTEM OF LEDGERS. Show Answer Correct Answer: A) TRIAL BALANCE. 12. Inventory is harder to liquidate therefore it is eliminated from this ratio. A) Quick ratio. B) Current ratio. Show Answer Correct Answer: A) Quick ratio. 13. Bad debts are apportioned among departments in the proportion of sales of each department. A) False. B) True. Show Answer Correct Answer: B) True. 14. Regular price:$ 174. Discount:40%. Find the sale price. Round to nearest cent if necessary. A) $ 104.40. B) 69.6. C) 104.4. D) $ 140.40. Show Answer Correct Answer: A) $ 104.40. 15. Accounting Information System include A) Economics Events In Financial Terms. B) Recording, classifying, summarizing, analyzing, interpreting. C) Communicating information to users. D) All of the above. E) None of the above. Show Answer Correct Answer: D) All of the above. 16. All expenses must be recorded in ..... side of trial balance A) Ledger. B) Credit. C) Particular. D) Debit. Show Answer Correct Answer: D) Debit. 17. An endorsement on the back of a check consisting only of a signature is a(n) A) Incorrect endorsement. B) Restrictive endorsement. C) Special endorsement. D) Blank endorsement. Show Answer Correct Answer: D) Blank endorsement. 18. The total of cash and other assets put into the business by the owner. A) Capital. B) Cash. C) Shareholder's equity. D) None of above. Show Answer Correct Answer: A) Capital. 19. If Outstanding salary is given in trail balance with the date of commencement of financial year, it is shown in ..... A) Profit & Loss A/c. B) Liabilities. C) Assets. D) Trading A/c. Show Answer Correct Answer: A) Profit & Loss A/c. 20. The main financing source of public sector is A) Shares. B) Bank loans. C) Taxation. D) Sales. Show Answer Correct Answer: C) Taxation. 21. Financial accounting (Fl) is concerned with recording the financial impacts of business processes as they are executed. A) True. B) False. Show Answer Correct Answer: A) True. 22. Levies charged when purchasing cigarettes A) Bea. B) Tax. C) Tax. D) Retribution. Show Answer Correct Answer: B) Tax. 23. A present economic resource controlled by the entity as a result of past events is ..... A) Asset. B) Liability. C) Expense. D) Equity. Show Answer Correct Answer: A) Asset. 24. Dual aspect concept results in the accounting equation A) Capital +Liabilities =Assets. B) Capital =Assets. C) Revenue = Expenses. D) None of above. Show Answer Correct Answer: A) Capital +Liabilities =Assets. 25. One purpose of accounting information is to help certain users make decisions and plans for the business and to exercise control so that the plans come to fruition. Which one of the following user groups is most likely to use accounting information for this purpose? A) Owners. B) Employees. C) Community representative. D) Managers. Show Answer Correct Answer: D) Managers. 26. Carriage outward is recorded in A) Trading account debit side. B) Trading account credit side. C) Profit and loss account debit side. D) Profit and loss credit side. Show Answer Correct Answer: C) Profit and loss account debit side. 27. A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year. A) Retained Earnings Statement. B) Balance Sheet. C) Income Statement. D) Statement of Cash Flows. Show Answer Correct Answer: D) Statement of Cash Flows. 28. ..... is the process of recording, in sequential order, the daily transactions of a business entity. A) Accounting. B) Analysis. C) Recording. D) Bookkeeping. Show Answer Correct Answer: D) Bookkeeping. 29. The correct procedure for recording trade receivables is..... A) Reduction of Receivables, Write-off of Receivables. B) Additional Receivables, Sales Returns. C) Addition of Receivables, Receipt of Receivables. D) Reduction of Receivables, Credit Sales. Show Answer Correct Answer: A) Reduction of Receivables, Write-off of Receivables. 30. Which of the following reports is filed annually with the SEC? A) Form 10-K. B) Form 8-K. C) Form 10-Q. D) Press Release. Show Answer Correct Answer: A) Form 10-K. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesFinancial Accounting Quiz 1Financial Accounting Quiz 2Financial Accounting Quiz 3Financial Accounting Quiz 4Financial Accounting Quiz 5Financial Accounting Quiz 6Financial Accounting Quiz 7Financial Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books